Life Insurance State Exam
According to the entire contract provision, a policy must contain
A copy of the original application of insurance
When J. applied for a life insurance policy, the agent informed him that a medical exam would be required. The exam may be completed by
A paramedic or examining physician at the Insurer's expense
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
A payor benefit
Which of the following would NOT be considered an insurance producer?
An insured's officer
Which of the following is the basic source of information used by the company in the risk selection process?
Application
Which of the following is a feature of a variable annuity?
Benefit payment amounts are not guaranteed
Which of the following best describes fixed-period settlement option?
Both the principal and interest will be liquidated over a selected period of time
ABC insurance company receives an incomplete application and issues the policy anyway. Six months later ABC realizes the missing information. What term is used that prevents ABC from forcing the policy owner to answer further questions?
Estoppel
Which of the following terms best describe the coverage provided by term policies, as compared to any other form of protection?
Greatest
Which of the following is true about a defined benefit plan?
High-salaried employees with only a few years until retirement receive the highest contribution
As a field underwriter, a producer is responsible for all of the following tasks EXCEPT
Issue the policy that is required
Which of the following is TRUE of a qualified plan?
It has a tax benefit for both the employer and the employee
In term policies, what happens to the premium throughout the term of the policy?
Premium always remains level
Which of the following is correct concerning the taxation of premiums in a key person life insurance policy?
Premiums are not tax deductible as a business expense
What is the term of the entity an agent represents regarding contractual agreements with third parties?
Principal
Which of the following statements is TRUE about a policy assignment?
It transfers rights of ownership from the owner to another person
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?
Making comparisons between different policies
An insured purchased a life policy in 2010 and died in 2020. The insurance company discovers at the time that the insured had misstated information about her insurance history on the application. What will the insurer do?
Pay the death benefit
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Purchase a single life premium policy for a reduced face amount
Which of the following types of annuities will generally provide the highest monthly income?
Pure or straight life annuity settlement option will only pay for as long as the annuitant lives; therefore, it has the potential to provide the highest monthly income. Anytime a period certain option is included, it will reduce the monthly payout amount because even if the annuitant dies, the company must continue to pay benefits for the period certain.
The primary beneficiary of her husband's life policy found that no settlement option was stated in the policy on the date of her husband's death. Who will select the settlement option in this case?
The beneficiary
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
The fair credit reporting act
The waiver of cost life insurance is found in what type of insurance?
Universal Life
In the underwriting process, it was determined that the applicant for life insurance is in poor health and has some dangerous habits. Which of the following is true concerning the policy premium?
It will likely be higher because the applicant is a substandard risk
All of the following are characteristics of a group life insurance plan EXCEPT
There is a requirement to prove insurability on the part of the participants
Which of the following best describes the unfair trade practice of defamation?
Making derogatory or oral statements about another insurer's financial condition
A certificate of appointment is valid until any of the following EXCEPT
The agent becomes a nonresident licensee in another state
